In its 'What New?' section today, HMRC published a statement confirming a change of view on whether or not an LLP is a 'body corporate' for SDLT and stamp duty group relief purposes.
The main point underpinning the change of practice is that HMRC will now regard a LLP as being a body corporate, whereas their previous view was that this was not the case.
For both SDLT and stamp duty group relief purposes, HMRC will now regard an LLP as capable of being the ultimate parent of a group.
However, the more detailed commentary on the point has raised rather more questions than it has answered.
We will be producing a detailed note about the guidance and will set out some worked examples of when SDLT and stamp duty group relief is and is not available, but in the meantime, if you are contemplating a transaction in land or shares in circumstances where an LLP is transferor or transferee, or the transfer is made between companies linked through an LLP, please get in touch with one of the authors or your usual Herbert Smith contact.
A link to the HMRC website can be found here.